The Public Accounts Committee (PAC) of Malaysian parliament will conduct five more closed proceedings during April 2025 on the subject of increasing health insurance premiums. The committee will also consider the private hospital charges and their impact on public health. The committee is likely to present a comprehensive report in this regard to the parliament later in June this year.
Surging health insurance premiums in the country have caused public distress to the extent that the PAC had decided to hold for the first time public hearings on the issue.
PAC member and Bayan Baru member of parliament Sim Tze Tzin, who had launched a public channel for complaints on healthcare costs, said two public hearings and 12 closed proceedings have already been conducted since February this year, involving various stakeholders such as the ministry of finance, the ministry of health and Bank Negara Malaysia (BNM).
Mr Tzin told media persons that PAC will be calling several more stakeholders, including BNM again and the Malaysian Medical Council, with an aim to improve the committee’s recommendations.
He said, “We will prepare a detailed and comprehensive report next month (May 2025) before presenting it to Parliament in June 2025.”
Also, beginning 1 May this year the price display mandate for private clinics and hospitals will come into force in line with the pricing transparency policy in healthcare services.
Health insurance premiums in Malaysia have risen by as much as 30%-50% despite a cap of 10% by BNM.
BNM in its directive issued on 20 December 2024 had capped the annual premium increases at 10% for most policyholders in response to public outrage over steep health insurance premium hikes, with some exceeding over 200%. The directive had also mandated the insurers and takaful operators to spread out the health insurance premium hikes over three years.
BNM had also directed a one-year premium freeze for policyholders /certificate holders aged 60 and above on minimum medical and health insurance/takaful plans.